Europe’s Central Bank, Lagging Its Counterparts, Faces Eventful 2018<br />The European Central Bank’s Governing Council set a course for 2018 when it announced plans in October to scale back the purchases of government and corporate bonds<br />that it has been using to hold down interest rates and stimulate inflation.<br />Mr. Draghi’s news conference Thursday will most likely be dominated by questions about<br />what 2018 holds for the eurozone economy and how the central bank would react.<br />It could mark the end to the crisis measures that have been in place in the eurozone since 2008,<br />and the beginning of a new era — with monetary policy returning to normal and the central bank beginning to gently push up interest rates.<br />Expectations are low that Mario Draghi, the bank’s president, will make news on<br />Thursday when he meets with reporters at the bank’s final meeting of 2017.<br />The bank’s outlook on the state of the eurozone economy will be clearer Thursday, when<br />its in-house economists issue their latest forecasts for growth and inflation.<br />The estimates do not necessarily reflect the views of Mr. Draghi or all members of the Governing Council,<br />but are closely watched for hints of where the bank thinks the economy is going<br />The bank said it would keep buying bonds at a reduced rate at least through September, and left open the door for continued purchases after that.
